Thinking of purchasing a new company to add to your portfolio? Pt 3
Steps 7-10 when acquiring a new company
- Have a sensible integration plan
Your acquisition will have a profound effect on your overall commercial strategy. Think about how this new business will interact with your other ventures, and what objectives you expect it to achieve for your wider portfolio in the short-, medium- and longer term. Our consultants can help you develop a robust integration plan if you are unsure exactly how your resources, assets and employees will need to be combined once you’ve signed on the dotted line.
- Negotiate acquisition terms with the help of a third party
It is absolutely crucial to employ a third-party mediator to help you secure the acquisition with the most favourable terms possible. They will be able to manage all negotiations with a level head and a clear focus on achieving the right outcomes for everyone. Again, @UKBA finance directors and business advice professionals can take on this role.
- Carefully communicate the acquisition to the acquired employees
This is the step that many entrepreneurs do not consider when they are acquiring a new business. It can be easy to consider the purchase as nothing more than a transfer of capital for an extra profit-generating vehicle – but there are real people involved in this transaction, and their needs must be considered.
Do not underestimate the impact that your acquisition may have on your staff, not least in how they might feel about their job security or their opportunities for further professional development. Make sure that the current owners communicate their intentions clearly and leave room for discussion, so everyone feels heard.
Talk to your workers about what the acquisition means for them at a practical level. And when the time comes to finalise the contracts, make sure your employees are the first to hear about the changes that are coming.
- Have a deadline in mind for the acquisition – but be prepared to be flexible
Have a rough timeframe in mind for the acquisition process. Be prepared for issues to arise and deadlines to change!
Understandably, you will want the acquisition to go through as quickly as possible. However, there’s a lot involved in navigating a successful purchase – lots more than we have covered here.
To speak with a business advisor use the link
Russell Pope | UK Business Advisors (ukba.co.uk)
or call 0333 444 8522